The banking sector is a cornerstone of the global economy, driving economic growth, financial sta-bility, and efficient resource allocation. Assessing the financial health and operational effectiveness of banks is crucial for maintaining the stability of the broader financial system. The CAMEL model, a well-established analytical framework, provides a comprehensive approach to evaluating key aspects of bank-ing performance, including Capital Adequacy, Asset Quality, Management Efficiency, Earnings Quality, and Liquidity. This model highlights areas for improvement and ensures a thorough assessment of a bank’s financial soundness. Extensive research has confirmed the model's applicability across various global contexts, including India, Nepal, Pakistan, Saudi Arabia, and Sri Lanka, consistently identifying asset quality, capital adequacy, and earnings as essential drivers of profitability. The model also reveals that private banks generally outperform public banks in most parameters. Moreover, the CAMEL model has proven to be a valuable tool in promoting financial inclusion, particularly through the analysis of Small Finance Banks, and its adaptability to emerging markets further underscores its relevance. Despite its broad applicability, gaps exist in the literature, particularly regarding the model’s adaptation to diverse regulatory environments and market dynamics. Addressing these gaps will enable more customized strategies for financial analysis and risk management, enhancing the resilience of the global banking system. This study aims to contribute to this discourse by exploring the nuanced use of the CAMEL model in assessing the financial performance of banks in varied contexts. The findings aim to offer ac-tionable insights for improving financial performance, managing risks, and fostering sustainable growth in the banking industry.
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